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Welltower
(NYSE:WELL)
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Rating:77Outperform
Price Target:
$282.00
â–²(11.87% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by strong financial quality (notably high, consistent free cash flow) and a clear upward price trend above key moving averages. The latest earnings call adds support via raised FFO guidance and strong same-store NOI/occupancy momentum. Offsetting these positives, valuation is a meaningful headwind given the very high P/E and only modest dividend yield, and the recent operating margin compression remains an item to monitor.
Positive Factors
Strong free cash flow generation
Consistent, large free cash flow that roughly equals net income and has grown ~25% provides durable funding for dividends, debt reduction and accretive investments. This cash-backed earnings quality reduces reliance on capital markets and supports multi-quarter execution of growth plans.
Negative Factors
Execution risk on lower-occupied SHOP assets
A sizable portion of SHOP NOI comes from recently acquired, lower-occupancy assets that require meaningful lease-up and operational improvement. If WBS-driven lift and occupancy recovery are slower than planned, expected cash flow conversion and targeted returns may lag for multiple quarters, pressuring FFO per share.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, large free cash flow that roughly equals net income and has grown ~25% provides durable funding for dividends, debt reduction and accretive investments. This cash-backed earnings quality reduces reliance on capital markets and supports multi-quarter execution of growth plans.
Read all positive factors
Welltower Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down top-line sales across the company’s business lines, highlighting where growth is coming from and where the company is most exposed to market or payer changes. Comparing segment revenues over time reveals concentration risk and which areas drive overall growth or decline.
Breaks down top-line sales across the company’s business lines, highlighting where growth is coming from and where the company is most exposed to market or payer changes. Comparing segment revenues over time reveals concentration risk and which areas drive overall growth or decline.
Data provided by:
The Fly
The FlyWelltower (WELL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$168.97B
Dividend Yield1.26%
Average Volume (3M)3.21M
Price to Earnings (P/E)121.5
Beta (1Y)0.22
Revenue Growth37.49%
EPS Growth-142.31%
CountryUS
Employees712
SectorReal Estate
Sector Strength53
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)1.93
Shares Outstanding720,744,930
10 Day Avg. Volume2,658,399
30 Day Avg. Volume3,208,630
Financial Highlights & Ratios
PEG Ratio-12.23
Price to Book (P/B)2.93
Price to Sales (P/S)11.58
P/FCF Ratio43.38
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$253.25Price Target Upside0.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)2.85
Revenue Forecast (FY)$14.06B
Welltower Business Overview & Revenue Model
Company Description
Welltower Inc. (NYSE:WELL), an S&P 500 company based in Toledo, Ohio, is a leader in reshaping healthcare infrastructure. This Real Estate Investment Trust (REIT) strategically collaborates with premier operators in seniors housing, post-acute car...
How the Company Makes Money
Welltower makes money primarily by owning healthcare-related real estate and generating recurring income from that real estate through several main structures. (1) Senior housing operating portfolio income: For certain senior housing communities, ...
Welltower Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Positive
Overall the call was strongly positive: management reported a record quarter with double-digit same-store NOI growth, significant occupancy and RevPOR momentum, margin expansion, a raise to full-year FFO guidance, sizable off-market investment activity, strengthened liquidity and credit outlook, and continued deployment of an operational playbook (WBS) expected to drive post-acquisition cash flow. The key risks discussed — dispositions causing near-term dilution, macro/rate uncertainty, the need to execute on lower-occupied acquisitions and development amid high construction costs, and longer-term labor pressure — are meaningful but framed as known trade-offs that management believes are addressed by their capital discipline, platform advantages, and operational initiatives. On balance, the positive execution and upgrades outweigh the challenges called out.Positive Updates
Record Quarter and Strong Bottom-Line Growth
Company reported a record quarter with normalized FFO of $1.60 per diluted share, representing ~25% year-over-year growth; net income attributable to common stockholders was $0.61 per diluted share.
Negative Updates
Near-Term Dilution from Dispositions
Management noted nearly $1 billion of dispositions during the quarter and referenced $3.6 billion of dispositions completed year-to-date (and more than $11 billion over the past year), which caused near-term per-share dilution even as proceeds are redeployed for longer-term growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter and Strong Bottom-Line Growth
Company reported a record quarter with normalized FFO of $1.60 per diluted share, representing ~25% year-over-year growth; net income attributable to common stockholders was $0.61 per diluted share.
Read all positive updates
Company Guidance
Welltower updated full‑year 2026 guidance to normalized FFO of $6.36–$6.44 per diluted share (midpoint $6.40, a $0.12 midpoint raise comprised of +$0.03 from SHOP NOI, +$0.08 from investment/financing activity and +$0.01 from taxes/other) and net income attributable to common of $3.11–$3.19 per diluted share. The outlook assumes total portfolio same‑store NOI growth of 13.75%–16% driven by subsegments: outpatient medical 2%–3%, long‑term post‑acute 2%–3%, senior housing, net 3.5%–4.5%, and senior housing operating (SHOP) 18.5%–21.5%; SHOP is modeled to produce ~9.3% revenue growth (RevPOR +5.1% and occupancy +350 bps) and ~5% expense growth (ExpPOR ≈1%). Management expects near‑term net debt/adjusted EBITDA of ~3x (Q2 ended 2.99x), exited the quarter with $2.1B cash and capacity to fund roughly $6B of incremental investments, and noted positive rating outlooks (S&P/Moody’s) and a subsequent $1.15B senior unsecured issuance at a blended 3.95% coupon.Welltower Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.61B | 10.67B | 7.85B | 6.48B | 5.78B | 4.71B |
| Gross Profit | 4.90B | 4.18B | 3.02B | 2.53B | 2.22B | 1.93B |
| EBITDA | 3.02B | 2.31B | 2.78B | 2.40B | 2.04B | 1.71B |
| Net Income | 1.35B | 936.85M | 951.68M | 340.09M | 141.21M | 336.14M |
Balance Sheet | ||||||
| Total Assets | 69.88B | 67.30B | 51.04B | 44.01B | 37.89B | 34.91B |
| Cash, Cash Equivalents and Short-Term Investments | 1.97B | 5.03B | 3.51B | 1.99B | 631.68M | 269.26M |
| Total Debt | 19.72B | 21.38B | 16.76B | 16.12B | 14.96B | 14.68B |
| Total Liabilities | 22.44B | 24.10B | 18.47B | 17.64B | 16.50B | 15.91B |
| Stockholders Equity | 46.41B | 42.13B | 31.96B | 25.40B | 20.29B | 17.64B |
Cash Flow | ||||||
| Free Cash Flow | 2.66B | 2.85B | 2.20B | 1.55B | 1.30B | 1.26B |
| Operating Cash Flow | 3.38B | 2.88B | 2.26B | 1.60B | 1.33B | 1.28B |
| Investing Cash Flow | -13.35B | -10.51B | -5.51B | -5.71B | -3.70B | -4.52B |
| Financing Cash Flow | 7.61B | 9.00B | 4.91B | 5.45B | 2.76B | 1.57B |
Welltower Technical Analysis
Positive
252.07
Price Trends
225.81
Positive
217.12
Positive
204.88
Positive
Market Momentum
1.96
Positive
52.11
Neutral
35.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WELL, the sentiment is Positive. The current price of 252.07 is above the 20-day moving average (MA) of 240.09, above the 50-day MA of 225.81, and above the 200-day MA of 204.88, indicating a neutral trend. The MACD of 1.96 indicates Positive momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 35.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WELL.
Welltower Risk Analysis
Welltower disclosed 47 risk factors in its most recent earnings report. Welltower reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Welltower Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $9.91B | 26.71 | 8.54% | 3.35% | 58.48% | 70.32% | |
77 Outperform | $168.97B | 121.47 | 3.15% | 1.17% | 37.49% | -142.31% | |
74 Outperform | $15.34B | 17.52 | 16.92% | 5.18% | 15.18% | 72.69% | |
66 Neutral | $49.03B | 322.45 | 2.02% | 1.99% | 21.49% | 26.45% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | $5.34B | 32.87 | 2.31% | 5.37% | 13.50% | 7.25% | |
62 Neutral | $15.42B | 69.21 | 3.30% | 5.48% | 2.71% | -19.70% |
* Real Estate Sector Average
WELL
Welltower
236.92
71.43
43.17%
DOC
Healthpeak Properties
21.41
5.56
35.06%
OHI
Omega Healthcare
48.46
10.79
28.66%
SBRA
Sabra Healthcare REIT
21.04
3.44
19.56%
VTR
Ventas
93.36
26.50
39.64%
CTRE
CareTrust REIT
41.22
9.59
30.32%
Welltower Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Welltower Issues Canadian Senior Notes to Fund Growth
Positive
Jul 13, 2026
On July 13, 2026, Welltower OP LLC issued C$750 million of 3.850% senior unsecured notes due 2031 and C$400 million of 4.150% senior unsecured notes due 2033, both fully and unconditionally guaranteed by Welltower Inc. The notes, sold through a sy...
Business Operations and StrategyDividends
Welltower Boosts Quarterly Dividend Amid Strong Growth Outlook
Positive
Jun 1, 2026
On June 1, 2026, Welltower Inc. announced that its board of directors had approved a 15% increase in the company’s quarterly common stock dividend, with an expected new rate of $0.85 per share beginning in the second quarter of 2026, subject...
Executive/Board ChangesShareholder Meetings
Welltower Shareholders Reject Executive Pay in Annual Meeting
Negative
May 22, 2026
At its 2026 Annual Meeting of Shareholders held on May 21, 2026, Welltower Inc. shareholders elected all nine board-nominated directors to serve until the 2027 meeting and ratified Ernst Young LLP as the company’s independent registered pub...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Welltower Registers Additional Shares to Enhance Capital Flexibility
Neutral
Apr 29, 2026
On April 29, 2026, Welltower Inc. filed a resale prospectus supplement with the SEC to register up to 138,740 shares of common stock to be issued in exchange for securities provided as consideration in its recent acquisition of certain properties,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.